Selling an Apartment in Poland While Living in the USA – Power of Attorney, Notary, Taxes

Do you need to be physically in Poland

NO. Polish law allows for selling through a representative (notarized from the USA). However, each method has its pros and cons.

Option A: In-person in Poland

• Safest, often best prices
• Requires travel to PL (1-3 visits usually)
• Direct contact with buyers
• Control over the process
• Costs: tickets, accommodation, time off work

Option B: Through a representative (Power of Attorney)

• No travel to PL
• Representative (usually family, friend, or lawyer) handles everything
• Requires trust in the representative
• PoA costs: $100-300 ($50-150 notarized in the USA + $5-50 apostille + $30-100 translation)
• Better for experienced individuals – the representative should know Polish real estate

Option C: Mixed – key personal visits, the rest through a representative

• Notarial deed signed in person (one-day visit to PL)
• The rest (listing, negotiations) handled by the representative
• Balance of control + costs

Power of Attorney (PoA) from the USA

What is PoA for real estate

A notarized power of attorney authorizing a person in PL to act on your behalf. It can be:

• General Power of Attorney – for all matters
• Specific Power of Attorney – only for the sale of a specific property (recommended)
• Power of Attorney for specific actions – e.g., only to execute the notarial deed, but not to negotiate the price

Procedure for establishing PoA

Step 1: Drafting the text

A Polish lawyer or consulate can prepare the text of the power of attorney. It must include:

• Principal's details (your full details + PESEL)
• Representative's details (full details + PESEL)
• Detailed description of the property (address, land and mortgage register number)
• Scope of the power of attorney
• Date of issuance + validity

Step 2: Notarization in the USA

• Polish notarial templates accepted (with Polish text)
• Or US notary form with added required Polish elements
• Cost: $50-150 at US notary

Step 3: Apostille

The US notarial document must be recognized by Polish authorities. You need to:

• Apostille from the Secretary of State of the state where you signed
• Cost: $5-50 depending on the state
• Time: 1-4 weeks

Step 4: Certified translation into Polish

• Certified translator registered with the Minister of Justice of the Republic of Poland
• The translator can be in the USA or in PL
• Translation document + apostille
• Cost: $30-100

Step 5: Sending to PL

• Original with apostille + translation to the representative
• Express mail (UPS, DHL) – $50-100
• Keep copies for yourself

Alternative: PoA at the Polish consulate

You can create a PoA directly at the Polish consulate:

• Consul acts as a Polish notary
• No apostille or translation needed
• Cost: $50-100 (consulate fees)
• Requires appointment
• Easier but requires a visit

The selling process

Step 1: List the apartment for sale

Direct (without an intermediary)

• Free listings: OLX, Otodom, Domiporta, MorizonOgloszenia
• Paid (better visibility): Otodom Premium, OLX VIP
• Professional photos – crucial (200-500 PLN)
• Floor plan (layout) – Floorplanner online or from a designer
• Time for showings (or representative)

With an intermediary (real estate agent)

• Commission 2-3% of the sale (usually 2% if you choose exclusive)
• Some take 0.5-1% from the buyer (split fee)
• The agent finds the buyer, conducts showings, checks documents
• Easier but more expensive
• Better for emigrants (less contact)

Step 2: Check documentation

The Polish purchaser and their lawyer will check:

• Title deed / land and mortgage register (KW) – land and mortgage register of the property
• Certificate of no debt – from the local tax office
• Certificate from the cooperative (if cooperative) – of no debt and status
• Energy certificate – required from 2023 (~200-400 PLN to obtain)
• Extract from the land and mortgage register
• Development plan

Step 3: Negotiate price and terms

• Polish market negotiations typically 5-15%
• Cash deals favored
• Mortgaged deals – require bank approval (4-8 weeks)
• Acceptance of the offer in writing

Step 4: Preliminary contract

Optional but typical – before the final notarial deed:

• Deposit payment (usually 5-10% of the sale)
• Deadline for the final deed (typically 1-2 months)
• Conditions (e.g., mortgage approval)
• Cancellation penalties

Can be standard or notarial (the latter requires a visit to the notary).

Step 5: Notarial deed (final)

MANDATORY for selling property in PL:

• At a Polish notary
• Presence of the seller (or representative with PoA) + buyer
• The notary checks everything
• Signing the deed
• Handing over the keys / legal transfer of ownership
• The notary will submit an application to register the buyer in the KW

Step 6: Payment

Most common options:

• Cash transfer – transfer to the seller's account in PL on the day of the deed
• Notarial escrow – money deposited with the notary, released after registration in the KW
• Mortgage – the buyer's bank disburses after registration in the KW

Step 7: Transfer of funds to the USA

• SWIFT transfer from Polish bank to US bank
• Fee: $20-50 (Polish bank) + $15-50 (US bank receiving)
• Exchange rate spread: 0.5-2% from market rate
• Time: 2-5 business days

See separate guide: Transporting money between the USA and Poland

Costs of selling

Item	Payer	Cost
Energy certificate	Seller	200-400 PLN
Intermediary (if any)	Seller	2-3% of the sale
Notarial deed	Negotiable (usually buyer)	1-3% of the sale
PCC tax (buyer)	Buyer	2%
Entry in the KW	Buyer	200-1,000 PLN
VAT (only if primary residence + 5 years)	Seller	23% (rarely applicable for residences)
PIT-39 if sold before 5 years	Seller	19% on income
Apostille + translation of PoA	Seller	$40-200
SWIFT transfer fees	Seller	$40-100

Taxes – the most important decision

5-year rule (PIT-39)

Polish tax law: if you sell property before the end of the 5 years from the end of the year in which you bought (or received as a gift/inheritance) – 19% tax on income.

"Income" = (sale price) – (purchase price + purchase costs + improvement costs) – (sale costs)

After 5 years – no tax on the sale of primary residence.

Exceptions (exemptions)

Housing relief

If the proceeds from the sale are spent on housing purposes within 3 years (by the end of the second year later) – exemption from PIT-39 tax.

"Housing purposes" includes:

• Buying another apartment in PL (or another EU/EEA)
• Building or renovating a house
• Paying off a mortgage (on primary residence)
• Buying land for construction

Non-housing purposes (vacation, investment) do NOT qualify.

Inheritance / gift

If the property was inherited or received as a gift – counted from the date of acquisition by the donor / testator (NOT from the date received by you). This often means that the 5-year period has already expired.

Polish-US tax treaty

Poland and the USA have a treaty to avoid double taxation. Key points:

• Income from the sale of property in PL – usually taxed in PL (state where property is located)
• US may require reporting (Form 8938, FBAR if applicable)
• US tax credit for taxes paid in PL (Form 1116)
• YOU do not pay 19% twice

US tax implications

As a US resident (LPR or citizen), you have global tax reporting obligations:

Form 8938 (Statement of Specified Foreign Financial Assets)

If your Polish bank accounts (after the sale) exceed:

• Single: $50k year-end, $75k peak
• MFJ: $100k year-end, $150k peak

Required with 1040.

FBAR (FinCEN Form 114)

If total Polish accounts > $10k anytime during the year – FBAR required (separately from 1040).

Sale reporting on 1040

• Sale of Polish real estate → Schedule D (Capital Gains)
• Cost basis adjusted for inflation (FX rate change)
• May qualify for long-term capital gains rate (15-20% federal) if held > 1 year
• Foreign tax credit for Polish PIT-39 paid (avoid double taxation)

Consultation with a cross-border tax accountant is crucial.

Existing mortgage

If the apartment has a mortgage with a Polish bank:

• The bank must agree to the sale
• Or the mortgage must be paid off at transfer (escrow with notary)
• There may be a prepayment penalty (0.5-3% of the remaining amount)

Special situations

Heir inherits + sells

1. The court confirms the acquisition of the inheritance (inheritance certificate)
2. Entry in the land and mortgage register as the new owner
3. Sale possible like any other
4. The 5-year period counts from the date of acquisition by the testator – often already over

Co-owner (e.g., with siblings)

All co-owners must sign the deed of sale or have PoA for the representative.

Sale of cooperative apartment (TDŚ – title to cooperative)

Cooperative apartments – the sale proceeds differently:

• Approval from the cooperative
• Notarial deed (if full ownership)
• Or a cooperative agreement (if tenant-owned)

No Polish PESEL (rare)

PESEL is required for the notarial deed. See: PESEL abroad

Sale due to divorce

After a divorce from a Polish citizen, the sale of joint Polish property:

• Divorce decree translated into Polish
• Division of property before sale or simultaneously
• Lawyer from PL specializing in family law

Choosing a Polish lawyer / agent

Polish real estate lawyer

• Checks documents
• Prepares PoA
• Can act as a representative
• Cost: $1,000-5,000 for the full process
• Critical for cross-border transactions

Polish real estate agent

• Listing, showings, negotiations
• Cost: 2-3% of the sale
• Check licensing (professional real estate agents)

Cross-border tax accountant

• Polish-US tax expertise
• Advising on tax strategy
• Cost: $200-800 consultation, $500-2000 full tax filing
• Critical for US tax compliance

Practical tips

• Plan early – the process typically takes 6-12 months
• 5-year rule – check ownership time before selling
• Housing relief – may avoid PIT-39 if reinvested in housing
• Polish lawyer is key for cross-border transactions
• PoA with apostille – the most common path
• Consulate PoA – a more convenient alternative
• Energy certificate mandatory from 2023
• Polish-US tax treaty – protects against double taxation
• Form 8938 + FBAR – US compliance if accounts > thresholds
• SWIFT transfer fees – typically $40-100
• FX spread – 0.5-2% from market
• Consultation with a cross-border accountant – crucial before selling
• Polish mortgage – check prepayment penalty
• Keep all documents – for 5+ years after sale for audit